I just stumbled across this new website for buying and selling handmade items. Its still in its beta stages so the site does need some tweaking but the concept is great - Etsy without having to pay listing fees. Sadly it doesn't look quite as professional and finished as Etsy but hopefully that is something they will work on.
Its called Art Fire and they offer a basic seller package for free with the option to upgrade to get all the site features for a monthly fee of $15.95. From what I have seen so far the basic package contains all of the most important features so upgrading isn't necessary. I don't really have enough items on sale to justify upgrading just yet but maybe once I have made some more pieces and start selling more I will upgrade for the customisability and the option to join guilds.
I have made an account on there: http://www.artfire.com/users/Carnelion though I haven't listed any items yet. Though its not always obvious where you need to click to achieve what you want, it doesn't take long to get there if you try out a few buttons. There is a feature to link your Etsy account but I'm not quite sure what it does, I can't find a way to import my listings, for example :(
Here are a few of the most eye-catching pieces I've found on Art Fire so far:
These amazing feather earrings are made by NaturalDesigns1
This interesting design is by Twilight Boutique who also has a wide range of other beautiful jewelry including several vintage inspired rings
And this ingenious, unique piece was created by Steamer